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The government's decision to eliminate five zeros from the bolivar, two more than expected, has raised doubts and fears among Venezuelans who fear that the measure may encourage the increase in public services and services. fuel, and accelerate the progress The announcement of the monetary reconversion (which, as stated, aims to facilitate financial transactions) and anchoring the bolivar in the virtual currency of petro critics among badysts, men of Business and opponents who believe that the measures will not overcome the crisis that tends to worsen facing the problems of the oil industry, the economic heart of the country, the decline in production and financial difficulties.
In June, a daily inflation of 2.8% was reported, bringing the monthly rate to 128.4% and the annualized rate to 46.305%, according to estimates of the National Assembly. National (unicameral parliament), which controls the opposition.
The International Monetary Fund (IMF) said earlier this week that inflation could jump to Venezuela at 1,000,000% by the end of the year, a record rate in the region would lead the oil country to a situation similar to that of Germany in 1923 or Zimbabwe in 2008.
The economic crisis keeps 87% of the population in poverty, and makes 9 out of 10 Venezuelans unable to pay their food The government plans to take several million banknotes in the next two weeks and incorporate a 50-cent coin and another a bolivar, in addition to eight notes of 2, 5, 10 , 20, 50, 100, 200 and 500 bolivars.
President Nicolás Maduro said that the "sovereign bolivar" will come into force on August 20, but some badysts predict that it could be extended for the second time in a row because the deadline for distributing new notes across the country and prepare the banks and the population is too short.
The government originally planned that reconversion would start on June 4th. , but extended it until August 4 at the request of the bank that asked for additional time to adapt their systems to the new currency cone.
"What they are removing the zeros, but everything continues the same," said Asdrúbal González, a 66-year-old butcher, acknowledging that he does not believe that the announced measures will stop the vertiginous progression prices that keeps millions of prostrate Venezuelans trying to survive on a minimum wage of less than two dollars a month in the midst of the worst crisis for decades.
While cutting with a slicing knife the fat to a piece of meat that is preparing for sale in an improvised wooden shelf of a market In the street east of the capital, Gonzalez has He expressed concern that the measures impose an adjustment to naphtha (sold at 6 bolivars, equivalent to less than a penny per liter) and to transportation, which, according to him, "will do the business". that it raises everything. "
Economic Vice President Tareck El Aissami has badured that monetary conversion will" defend and improve "the purchasing power of the working clbad before the acceleration of prices." The economic war, the price war, criminal speculation, brutal, has its time and its end, "he said.
In an address to the presidential palace, El Aissami said that the executive would send the The National Assembly in power constitute a draft reform of the law on illegal trade which will open the possibility of investments in foreign currency and facilitate the repatriation of investors' capital in various currencies.In Venezuela, a strict control changes have been in effect for 15 years
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